iib leases property to our customers in return for a rental payment over a specified financing period. We promise to transfer the title of the property to you at the end of the financing period, provided all payments have been made in accordance with Shariah documentation.

Ijarah is an effective financing tool that allows businesses to acquire equipment and machinery through leasing, instead of outright purchase, reducing the burden of capital expenditure. The leasing period normally ranges from 3-5 years and the customer has the right to purchase the leased asset at the end of the Ijara period.

Musharika is a partnership between iib islamic banking and our customer, wherein we participate in financing new or existing projects, sharing the capital, returns and risks. iib may alternatively contribute to the ownership of specified assets on a permanent or a non-permanent basis provided that the profit is shared in accordance with the agreement.

Profit is distributed amongst all capital-providing partners as per previously set conditions and loss is borne in proportion to the contribution to the partnership.

Murabaha is sn Islamic financing structure that works as a sales contract, fixing the price of goods as required by a customer, inclusive of a pre-agreed profit margin. iib islamic banking then makes the purchase and closes the deal with the customer’s seller of choice, subsequently entering into a sale with the customer. The customer repays iib according to pre-defined installments or settlement terms.

Murabaha financing varies according to the nature of purchases and the working capital cycle of the customer. It is typically from 90 to 180 days for raw materials and finished goods and up to 5 years for machinery and equipment.

iib can invest customer funds in a new or existing company for the customer. Mudaraba is a partnership profit between us and an enterprise/company for a pre-agreed period. Customers can deposit funds with iib, which will then be invested in economic or business activity. that complies with the principles of Sharia. Profit-sharing terms are agreed in advance.

Istisna is used by iib islamic banking to finance the construction of real estate such as buildings, warehouses, showrooms, shopping malls, residential towers and villas. Manufacturing activities involved in the construction of aircrafts, ships, machines and equipment, can also be financed.

Istisna is generally a long-term sales contract between iib and the customer, whereby we agree to construct and deliver an asset at a pre-determined future time, at an agreed price. iib islamic banking will pay the contracted developer or builder in full or at specific stages of project completion. The client will then pay iib as per the agreed payment plan, either in installments, at delivery or after project completion.